Deadbeat Borrower & Tenant in Common -- Manufactured Home/Rented Land

[Goodeedpunished]

I am the Lender AND a registered co-owner with a Tenant in Common ("and," not "or") who for years has struggled with finances. I have never occupied the coach, while he has had 100% use and enjoyment of it from Day 1.

He has no job, no income and has sold off all items of value to make ends meet each month. While he has stayed current with me on his Promissory Note/Security agreement, he has been consistently late with his space rent to the park. So, they've issued him two 3/60 Day Notices to pay or quit. The last time, he failed to cure the rent default, so I was allowed to pay it on my own behalf as Lender and will continue to do so to protect my interest in the unit's value, which at this time outstrips the debt by almost $30K.

The park says his right to occupy a residence in the park has been revoked. They will not take any further payments from him.

I am working with the park management, but they tell me he HAS to vacate in 60 days or sell the coach to a qualified buyer. I could be that buyer, but he has rejected two very generous offers from me to buy out his interest, and a third listing offer to do a traditional sale. I am trying to make sure he leaves with some money in his pocket, but my feeling is he plans to squat. The park said it could cost up to $5K for them to evict him, and I would be responsible for that cost if I want to keep the coach. Which of course, I do.

Under new lending laws, he needs to be five MONTHS in arrears to me before I can repossess the manufactured home, by which time the park will have already done their eviction. The best legal action I could take quickly would be to sue him personally for breach of contract and/or fraud, but that could get expensive -- much more than the eviction/unlawful detainer.

Any ideas about how to preserve my rather large investment in what has turned out to be a very poor credit risk? In case you were wondering, we once were old friends -- no longer. We were never in any kind of romantic or business relationship.

 

[army judge]

You can't evict him.
Why?
You've told us that you each own 50% interest in the coach.
He's stuck with you, you with him.
What you've created is far worse than a marriage.
He's going to mooch.
You want to avoid losing the coach.
He won't allow you to buy him out.

If I were you, I'd do a cost benefits analysis.
If that matters to you.
I don't sense it does.

So, plan B.
Make a deal with the park to evict him, you reimburse the park for their five grand outlay.
You keep making the payments, he surely won't.
After the eviction, you reimburse the park, they let you take possession of the coach.
That might require a contract and legal expenses, lawyers and all.

I just don't know. What you've created is such a mess, in a state that aids and abets this kind of shenanigans.

Have a trusted 3rd party buy you both out. The you buy it back from the trusted party.

 

[Goodeedpunished]

To quote Jackson Browne: "Don't confront me with my failures; I have not forgotten them." I did a good deed for a friend who was about to become homeless. It kept him off the streets for over two years, but now he has created a scenario where, if he won't take a LOT of cash for keys; enough cash to remake his life, that is where he will end up after all.

He is not an abuser of any substance, but he has serious mental issues. Issues to the point he cannot support himself, now or ever. And unfortunately, as easy as it is to be a deadbeat in CA, it's also very tough to get disability for mental illness. Which, btw, he won't admit he has.

But believe me, I do find a few gems in your answer, and I thank you for your time. The cost-benefit analysis comes out very well in my favor, especially if I can contract with the park to allow me possession post-eviction. I will seek some kind of MOU with them. And, I will look into the third party buy-out. I was thinking of that for just buying out his interest, as he is somewhat entrenched against me personally, but for the WHOLE coach, that just might work.

Thank you very much!

 

[army judge]

GDP, I hope it all ends well for you. You seem to be a nice person. These type of scenarios caused me to stop "helping" anyone with the expectation of their participation as agreed. I hope it all ends well for you. The MOOCHER, well, I hope he ends up back where he started.